Appeals Court Says It Lacks Jurisdiction to Overturn Order Barring Citigroup Unit From Making Interest Payments

A U.S. appeals court on Friday said it didn't have the jurisdiction to overturn a lower-court order barring a unit of Citigroup Inc. from making interest payments on Argentina's local-law bonds.

Citibank and Argentina were appealing an order made by U.S. District JudgeThomas Griesa, which said the bank couldn't make payments on restructured Argentine bonds governed by Argentine law until the country pays the approximate $1.6 billion it owes to holdout creditors. An interest payment on those bonds is due Sept. 30.